Karoon Gas (KAR)

Karoon Gas
has fallen more than 25 per cent this year, with large losses in the past two days. Its wholly owned subsidiary is set to buy a 20 per cent interest in a well off the coast of São Paulo, Brazil. The well confirmed the discovery of light oil, and Petroleo Brasileiro (Petrobas) will keep an 80 per cent interest in the site, subject to the approval of the Brazilian national petroleum agency. Karoon will then be subject to satisfying farm-in obligations. In September, a share placement to sophisticated and professional investors raised $186.4 million at $7 a share. A share purchase plan also raised an extra $81.8 million at $7 a share. The company also has operations in Australia, where its partners include ConocoPhillips and Talisman Oil & Gas. Most analysts have a “buy" rating on the stock, which has an average price target of $11.09. Paterson Securities is more bullish, with a price target of $12.22.